Maximizing a fresh start

The Client:

Environmental Recovery Corporation (ERC) provides turn-key environmentally sound waste management solutions. With locations in Lancaster, Chester and Baltimore, ERC is one of the largest residual waste processing facilities in the Mid-Atlantic.

The Challenge:

ERC previously used a small, sole proprietor accounting firm for its tax and assurance needs. Recent growth and expansion into new markets prompted company leadership to seek a more comprehensive relationship with its provider. Once RKL was selected during the proposal process, the engagement team hit the ground running, conducting on-site visits and interviews with key team members to gain a deeper understanding of the current state of this family owned business and its goals for the future.

During the early stages of the relationship, ERC received a purchase offer from Rock Island Capital, a private equity firm based in the Midwest. This unexpected offer shifted the initial focus of the ERC-RKL relationship and opened the door to a whole new dimension of RKL capabilities that could support ERC during a time of ownership transition.

The RKL Approach:

RKL’s mergers and acquisition experts played a key role in the sale process, conducting due diligence reviews and performing business valuations for ERC and its buyer, Rock Island Capital. Impressed by RKL’s regional reputation and track record of helping private equity firms optimize acquisition companies, Rock Island retained the firm as ERC’s assurance and tax provider.

The shift to new ownership rejuvenated ERC and provided the company with a reboot. The RKL team was equally inspired by this fresh start and continues to highlight new strategies for consideration, including state tax and nexus planning due to its cross-border presence in Maryland and compensation and incentive programs for its growing workforce.

The Results:

ERC’s switch to RKL right before the private equity offer was a fortuitous turn of events for the business. In addition to having a trusted advisor in its corner throughout the acquisition process, ERC benefitted from RKL’s savvy understanding of private equity deals that provided solid footing during the negotiations and beyond. United around a vision of continued success, RKL and ERC continue to collaborate around new opportunities for profitability and growth.